Question 1

The gross margin ratio,return on total assets,and basic earnings per share are all _____________ ratios.

Accepted Answer

The answer of The gross margin ratio,return on total assets,and...

Question 2

The ability to provide financial rewards sufficient to attract and retain financing is called:

Accepted Answer

A) Liquidity and efficiency. 
B) Solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness. 
A) Liquidity and efficiency. 
B) Solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness.

Question 3

The current ratio and acid-test ratio are used to reflect the ____________ of a business.

Accepted Answer

The answer of The current ratio and acid-test ratio are...

Question 4

Current assets minus current liabilities is:

Accepted Answer

A) Profit margin. 
B) Financial leverage. 
C) Current ratio. 
D) Working capital. 
E) Quick assets. 
A) Profit margin. 
B) Financial leverage. 
C) Current ratio. 
D) Working capital. 
E) Quick assets.

Question 5

General-purpose financial statements include the (1)______________, (2)_____________, (3)_______________, (4)______________,and (5)________________.

Accepted Answer

income statement ;balance shee

Question 6

Evaluation of company performance can include comparison and/or assessment of all but which of the following?

Accepted Answer

A) Past performance. 
B) Current performance. 
C) Current financial position. 
D) Future performance and risk. 
E) External user needs and demands. 
A) Past performance. 
B) Current performance. 
C) Current financial position. 
D) Future performance and risk. 
E) External user needs and demands.

Question 7

The measurement of key relations among financial statement items is known as:

Accepted Answer

A) Financial reporting. 
B) Horizontal analysis. 
C) Investment analysis. 
D) Ratio analysis. 
E) Risk analysis. 
A) Financial reporting. 
B) Horizontal analysis. 
C) Investment analysis. 
D) Ratio analysis. 
E) Risk analysis.

Question 8

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

Accepted Answer

A) True 
 B)False

Question 9

The comparative income statements for Silverlight Company are shown below.Calculate the following ratios for 2016:
(a)profit margin
(b)gross margin
(c)times interest earned.

Accepted Answer

The answer of The comparative income statements for Silverlight Company...

Question 10

Refer to the following selected financial information from McCormik,LLC.Compute the company's inventory turnover for Year 2.

Accepted Answer

A) 4.72. 
B) 4.33. 
C) 3.28. 
D) 5.78. 
E) 3.86. 
A) 4.72. 
B) 4.33. 
C) 3.28. 
D) 5.78. 
E) 3.86.

Question 11

External users of financial information:

Accepted Answer

A) Are those individuals involved in managing and operating the company. 
B) Include internal auditors and consultants. 
C) Are not directly involved in operating the company. 
D) Make strategic decisions for a company. 
E) Make operating decisions for a company. 
A) Are those individuals involved in managing and operating the company. 
B) Include internal auditors and consultants. 
C) Are not directly involved in operating the company. 
D) Make strategic decisions for a company. 
E) Make operating decisions for a company.

Question 12

Selected current year company information follows:   The total asset turnover is:

Accepted Answer

A) 2.24 times 
B) 2.81 times 
C) 3.64 times 
D) 4.67 times 
E) 6.28 times 
A) 2.24 times 
B) 2.81 times 
C) 3.64 times 
D) 4.67 times 
E) 6.28 times

Question 13

The current year-end balance sheet data for a company are shown below.Calculate the company's:
(a)working capital
(b)current ratio
(c)acid-test ratio.

Accepted Answer

The answer of The current year-end balance sheet data for...

Question 14

Use the following selected information from Wheeler,LLC to determine the 2015 and 2014 trend percentages for net sales using 2014 as the base.

Accepted Answer

A) 36.4% for 2015 and 41.1% for 2014. 
B) 55.0% for 2015 and 56.0% for 2014. 
C) 119.4% for 2015 and 100.0% for 2014. 
D) 117.2% for 2015 and 100.0% for 2014. 
E) 65.1% for 2015 and 64.6% for 2014. 
A) 36.4% for 2015 and 41.1% for 2014. 
B) 55.0% for 2015 and 56.0% for 2014. 
C) 119.4% for 2015 and 100.0% for 2014. 
D) 117.2% for 2015 and 100.0% for 2014. 
E) 65.1% for 2015 and 64.6% for 2014.

Question 15

Carducci Corporation reported Net sales of $3.6 million and beginning Total assets of $0.9 million and ending Total assets of 1.3 million.The average Total asset amount is:

Accepted Answer

A) $2.3 million. 
B) $2.7 million. 
C) $0.25 million. 
D) $0.36 million. 
E) $1.1 million. 
A) $2.3 million. 
B) $2.7 million. 
C) $0.25 million. 
D) $0.36 million. 
E) $1.1 million.

Question 16

Efficiency refers to how productive a company is in using its assets,and is usually measured relative to how much revenue is generated from a certain level of assets.

Accepted Answer

A) True 
 B)False

Question 17

The ability to meet short-term obligations and to efficiently generate revenues is called:

Accepted Answer

A) Liquidity and efficiency. 
B) Solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness. 
A) Liquidity and efficiency. 
B) Solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness.

Question 18

Intra-company analysis is based on comparisons with competitors.

Accepted Answer

A) True 
 B)False

Question 19

Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.

Accepted Answer

A) True 
 B)False

Question 20

The ability to generate positive market expectations is called:

Accepted Answer

A) Liquidity and efficiency. 
B) Liquidity and solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness. 
A) Liquidity and efficiency. 
B) Liquidity and solvency. 
C) Profitability. 
D) Market prospects. 
E) Creditworthiness.

Exam 17: Analysis of Financial Statements

The gross margin ratio,return on total assets,and basic earnings per share are all _____________ ratios.

The ability to provide financial rewards sufficient to attract and retain financing is called:

The current ratio and acid-test ratio are used to reflect the ____________ of a business.

Current assets minus current liabilities is:

General-purpose financial statements include the (1)______________, (2)_____________, (3)_______________, (4)______________,and (5)________________.

Evaluation of company performance can include comparison and/or assessment of all but which of the following?

The measurement of key relations among financial statement items is known as:

Horizontal analysis is used to reveal changes in the relative importance of each financial statement item.

The comparative income statements for Silverlight Company are shown below.Calculate the following ratios for 2016: (a)profit margin (b)gross margin (c)times interest earned.

Refer to the following selected financial information from McCormik,LLC.Compute the company's inventory turnover for Year 2.

External users of financial information:

Selected current year company information follows: The total asset turnover is:

The current year-end balance sheet data for a company are shown below.Calculate the company's: (a)working capital (b)current ratio (c)acid-test ratio.

Use the following selected information from Wheeler,LLC to determine the 2015 and 2014 trend percentages for net sales using 2014 as the base.

Carducci Corporation reported Net sales of $3.6 million and beginning Total assets of $0.9 million and ending Total assets of 1.3 million.The average Total asset amount is:

Efficiency refers to how productive a company is in using its assets,and is usually measured relative to how much revenue is generated from a certain level of assets.

The ability to meet short-term obligations and to efficiently generate revenues is called:

Intra-company analysis is based on comparisons with competitors.

Three of the most common tools of financial analysis include horizontal analysis,vertical analysis,and ratio analysis.

The ability to generate positive market expectations is called:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Managerial Accounting Concepts and Principles

Job Order Cost Accounting

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters

General-purpose financial statements include the (1)________, (2)_, (3)_, (4),and (5)__________.